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Non-cash Charitable Contributions under $250 each but total over $500 - CWA

I understand that donations over $250 require a CWA.  If I made multiple Goodwill donations (who does not give a contemporaneous written acknowledgement, CWA) that total over $250 I assume I have to file 8283 section A but do I have to have a CWA or will multiple receipts work?

Example,

January - $200 donation - standard Goodwill receipt

March - $200 donation - standard Goodwill receipt

June - $200 donation - standard Goodwill receipt

Sept - $200 donation - standard Goodwill receipt

Would I be fine entering them separate in 8283 section A and having basic receipts (No CWAs) for each donation?

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4 Replies

Non-cash Charitable Contributions under $250 each but total over $500 - CWA

If audited, the IRS does not have to award any deduction that you can't prove.

 

I have heard various stories on this.  Such as a customer who complained the IRS denied all their Goodwill donations because they had the standard, Goodwill form letter for each.  I don't know how common this is or whether different auditors have different standards.

 

For myself, I do the following:  I make a written, dated inventory of items and approximate values, and staple it to the form letter.  For large donations, I take pictures and save them on my hard drive with other tax documents.  In all cases you should have a contemporaneous written record of your items, with enough detail to allow you to determine value. (This will vary from item to item of course.)  

 

Even then, I have read at least one customer complaint here that the examiner denied the donation because there was no proof that the items on the list were actually donated.  So you could potentially take the extra step of preparing your inventory ahead of time, and asking someone at Goodwill to sign it when you drop off the donation.  Don't use unattended drop boxes, only go to the Goodwill store when someone is there, or donate to a different charity where someone will sign your inventory (VOA, DVA, etc.)  Whether you also get a form letter or get someone to sign your inventory is worth thinking about, if you can't get a full acknowledgment. 

 

As-is for 2019, you've got what you've got.  I wouldn't not claim legitimate deductions just out of fear of the IRS.  But that's the best I can tell you.

 

And yes, Turbotax will generate a form 8283 for you.  And you don't send your receipts to the IRS, just keep them for at least 3 years in case of audit.

SusanY1
Expert Alumni

Non-cash Charitable Contributions under $250 each but total over $500 - CWA

Separate itemized receipts for each donation meet the requirement.  The more detail that your receipts have, the better. 


There is always an element for things such as these that is subject to the discretion of the auditor, should your return be subject to audit - but your receipts do meet the requirement.

 

 

 

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Non-cash Charitable Contributions under $250 each but total over $500 - CWA


@SusanY1 wrote:

Separate itemized receipts for each donation meet the requirement.  The more detail that your receipts have, the better. 

My concern is with the term "standard goodwill receipt".  In my old city, Goodwill had drop boxes and after you dropped in your bag, you could pull a form letter out of a mailbox that had no date, no names and no specificity.  One could write their own list on that, but what was the proof you didn't just pull the slip out of the box and make it up? 

 

More recently they switched to a system where, if you go during working hours, they show you to a terminal and you type the details of your donation and it prints a letter for you.  It's still not signed by them, but at least it would be harder for an auditor to claim it was faked.

 

Non-cash Charitable Contributions under $250 each but total over $500 - CWA

I have a receipt that they put their initials on and date; you can put your items on it but what proves you didn't fake the signature and date in the same manner from a drop box receipt like you said?

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